Silicon Valley Bank parent eyes India, China

California-based SVB Financial, the parent of Silicon Valley Bank, is eyeing banking licences in China and India, Asia's No1 and No3 economies, as part of its international expansion, its chief executive said.

The bank, which focuses on lending to the technology, life sciences, venture capital and premium wine industries, has moved into Israel, China, India and Britain as it looks to take its venture capital business model overseas.

The bank, valued at close to $2.5 billion, has a joint venture, which is subject to regulatory approval, in China with Shanghai Pudong Development Bank Co Ltd and has invested in Chinese companies such as Zhejiang Uni-power Guaranty and Zero2IPO Group, and venture capital funds.

"In China, we've announced a joint venture, and our goal is to get a banking license there, and the same in India," Greg Becker said in a telephone interview.

Becker took over as CEO in January to allow previous-CEO Ken Wilcox to focus on developing the China joint venture.

SVB, operates a non-banking financial company in India, but has no joint venture partner there.

"In India, right now, our strategy is to go it alone," Becker said, adding the Indian subsidiary works with established venture capital players and lends to venture-backed companies.

The Indian venture capital market is growing fast and has been a target for the likes of private equity giants KKR & Co, Warburg Pincus and Carlyle Group.

Source: Business Standard